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Perception of high prices leads to last-minute discounts

Turkey is now positioned as an 'expensive country' in tourism. While a vacation is a dream for domestic tourists, foreigners have started preferring alternative destinations. With hotel occupancy rates not at the desired levels, hotels in Bodrum, Fethiye, and Kaş have applied average discounts of 10-50% since mid-July. For instance, the cost for an all-inclusive three-night stay for two at a hotel in Antalya Kemer dropped from 62,400 TL to 29,952 TL with a 52% discount. Similarly, a hotel in Muğla Fethiye reduced its three-night, two-person rate in August from 92,000 TL to 64,584 TL, approximately a 58% discount. Ertan Ustaoğlu, President of the Turkish Small Hotels Association, stated, 'We have reduced prices by an average of 20-25%. We are now waiting for last-minute reservations. The price reduction has caused a slight uptick in bookings.' Emphasizing that tourism targets for coastal hotels will not be met, Ustaoğlu added, 'Our current occupancy rates are 50%. Reaching 90-100% occupancy is unlikely. We will consider it good if we close with 70-75%.' Reminding that there are alternative markets for European tourists, Ustaoğlu said, 'They offer more affordable prices than us because their costs are not as high as ours.' 'WE HAVE LOWERED TOURISM TARGETS' Ömer Faruk Dengiz, President of the Bodrum Hoteliers Association (BODER), emphasized a 50% contraction in the domestic market. Dengiz acknowledged that foreign tourists are avoiding Turkey due to high prices and said, 'There have been discounts since winter. This is not happening for the first time. Normally, early booking discounts ended by April 30. However, we extended the early booking discounts in stages.' Adding that they have lowered their tourism targets, Dengiz said, 'Three years ago, our goal was 1.5 million tourists by sea and air, but now our target is an average of 1 million.' Evaluating the situation in restaurants, Kaya Demirer, President of the Tourism Restaurant Investors and Gastronomy Enterprises Association, said, 'There is a great panic in the south, with fears that all customers either went to Greece or stayed in their summer houses. But the impact of the holiday is being forgotten. The holiday in June saw significant spending by the middle class, and now there is a slowdown. The season, which usually peaks in July-August, started 10-15 days late. I see that faces are starting to smile, especially in the south, from this weekend onwards. There was no problem in the luxury segment, and we are now starting to see signs of improvement in the mid-segment as well.'

High Prices Affect Occupancy Rates in Turkish Tourism

Last-Minute Tourists Are Avoiding Turkey During what should be the peak of the tourism season, occupancy rates have fallen 30% behind last year. Industry representatives note that high prices are deterring both domestic and international visitors, leading to a perception that Turkey is expensive and driving away last-minute tourists. Despite opening the tourism season early with holiday periods, Turkey's mid-season occupancy in July is trailing last year's figures. Representatives highlight that high prices are also discouraging last-minute tourists, with tourism centers on average 30% behind last year's occupancy rates. Representatives note that high prices particularly impact establishments offering breakfast and room services, although there are no major issues for affordable all-inclusive five-star hotels. They emphasize that accommodation in tourism centers like Antalya, Marmaris, Bodrum, Çeşme, and Ayvalık is not significantly more expensive than their European counterparts, attributing higher costs primarily to personnel and rental expenses. Additionally, the high cost of food and beverages in restaurants is negatively affecting both domestic and international tourists' decisions to choose Turkey, with losses in the food and beverage sector exceeding 50%. Representatives also point out that domestic tourists are opting for Greek islands due to lower prices there, influenced by factors such as fewer staff, lower-quality hotels, and a lack of brand recognition. "Our Prices Are Very High and We're Missing the Mark" Alp Özel, President of the Antalya Tourist Establishments Hoteliers and Pensioners Association (ANTOP), stated that July started poorly in terms of tourists, although there are no major issues with occupancy rates in city center hotels, which are around 70%. Özel noted that the daily rates for three-star boutique hotels with bed and breakfast and swimming pools have dropped from 100-110 euros last year to 60-70 euros this year. He reported that second-class hotels near the sea in Konyaaltı and Kemer are empty. Özel emphasized the difficulty in budgeting, particularly for five-star hotels, which calculate their costs in euros and dollars. He mentioned that many had anticipated higher exchange rates, resulting in significant revenue losses and a 30-35% drop in occupancy compared to last year. Despite optimistic reports from the Ministry of Tourism, Özel noted a 25% decline in domestic tourists, attributing high prices as a deterrent for foreign tourists, making Turkey seem expensive. He stressed the importance of the so-called 'affordable five-star hotels,' which number around 450 and face substantial cost increases, noting that even entry-level staff demand high wages. Russians Lead in the First Half of the Year Kaan Kaşif Kavaloğlu, President of the Mediterranean Tourist Hoteliers and Operators Association (AKTOB), reported over 90% occupancy in Antalya hotels, noting the continued disadvantage posed by the Russia-Ukraine war. He mentioned some recovery from the lost Ukrainian market, with Ukrainians making reservations through Europe. Russians continue to visit, reclaiming the top spot in the first six months after Germans led in the first five months. He noted a 15% increase in prices in euros compared to last year. "The Season Started This Way Last Year Too" Buğra Artıç, Chairman of the Board of the South Marmara Tourist Hoteliers and Operators Association, expressed disappointment with the level of tourists from the Middle East, who have shifted more towards the Balkans. He mentioned that while the tourism numbers in Bursa started similarly to last year, a slight increase occurred later. Artıç is hopeful for more growth in August, despite a slow start to the season. "This Season Won't Turn Around" Idris Akgül, operator of Bono Restaurant and Hotel, reported a 20-30% decrease compared to last year, with no prospects of price reductions. He remarked that tourism professionals had hoped for recovery with last-minute tourists, but negative feedback from previous visitors regarding high prices and poor conditions has deterred last-minute bookings. "Turkey Has Become Expensive for Foreigners" Ali Uçar, President of the Ayvalık Chamber of Commerce, cited several reasons for the downturn in tourism, noting that only 8% of Turkey's population can afford mid-to-high-end vacations, roughly 6.5 million people heading to Aegean and Mediterranean resorts. He pointed out that Turkey has become expensive for foreign tourists, with some countries finding the Turkish lira still unattractive. Uçar highlighted the significant rise in costs beyond inflation, which naturally affects prices. He noted that while Greece and Turkey's price difference is relative, Turkey's higher service levels make its prices seem cheaper. Domestic Tourists Favor Greek Islands Cenk Öztanık, CEO of Avantgarde Collection, mentioned that while hotel prices are not excessively high compared to European counterparts, there is notable inflation in Istanbul and even higher inflation in Bodrum. He stated that high prices are driving people to Greek islands and Europe, even affecting yacht traffic. Öztanık predicted increased activity starting this week but questioned the overall satisfaction with the short 50-day busy period. 4o

Paying the price for expensive lahmacun! There's neither domestic nor foreign tourists left

Not only domestic but also foreign tourists have been driven away, leaving the most famous holiday destinations on the Aegean coast almost empty this summer season. Hotel occupancy rates have dropped to around 60% in many areas, including Bodrum, the jewel of tourism. Some businesses have even resorted to using 'stand-in' customers. Business owners in Bodrum, which has been in the spotlight due to lahmacun prices, defended that prices are not actually expensive. MAYOR’S RESPONSE TO ‘BODRUM IS EXPENSIVE’ CLAIMS Speaking to Halk TV, Bodrum Mayor Tamer Mandalinci expressed his reaction, stating that calling Bodrum very expensive is a perception operation. Mandalinci said, "As every year, the perception that Bodrum is expensive is brought up at the beginning of the year with the lahmacun index. Lahmacun is not something consumed daily on Bodrum beaches, but for some reason, certain people are trying to associate Bodrum with expensive lahmacun and create a perception of high costs here." "PRICE HIKES ARE NECESSARY" "We are being treated unfairly with the perception of high costs in Bodrum. Compared to last year, everything has become more expensive, so business owners in Bodrum have to reflect this in their prices. Bodrum offers a wide range for people. You can have a meal for 200 liras in Bodrum, or you can have a meal for 2,500 euros."

"The costs have increased, Turkey is now considered expensive."

Ferman Doğan, General Manager of Kempinski Hotel Bodrum, stated that the tourism figures for 2022 are very good and that everyone's expectations for this year are higher. "The occurrence of the earthquake in the conjuncture we are in caused us to experience a loss of 40 days, which we call the early reservation period. Later, the 2nd round of the Presidential election caused a 3-week loss in the domestic market. In addition to these, house sales to foreigners and the misuse of these sales have affected the occupancy rate." Doğan, who participated in the Bloomberg HT broadcast and made evaluations about the tourism sector, stated that their 2023 expectations were not what they wanted. Unexpected hikes have arrived Stating that the minimum wage was around 3,500 TL last year, this figure has now increased 3-4 times, "If your staff wages increase this much, it affects the whole industry, it also affects the producer who gives you vegetables and water. In addition to these, unexpected hikes were also made, accommodation taxes were increased, there was a tremendous increase in food prices, transportation increased. Of course, we have to look at these when making budgets and we have to reflect them in our prices in a logical way. Otherwise, the tourist says that instead of paying an average of 500 euros to Turkey, he says he will stay in Sharm El Sheikh for 250 euros and goes there. "Now, when you look at Spain, Greece, Egypt (Sharm El Sheikh), Dubai, Maldives, even Paris and London, we, as Bodrum, have become a more expensive center than many destinations. In other words, we are talking about an excessive price increase, an excessive demand, but an infrastructure system that will not respond to that demand. You can stay in a very nice hotel in Paris for 800 euros in Bodrum, where the 5-star segment is on average 800 euros, and you can stay in London or Dubai. In other words, the guest ask; I will stay in Dorchester in London instead of paying 800 euros and staying in a hotel in Bodrum. He asks me what do you give me in return for this money." Doğan stated that as a tourism professional, he thinks that Turkey is lacking in this regard.

#Expensive

Perception of high prices leads to last-minute discounts

High Prices Affect Occupancy Rates in Turkish Tourism

Paying the price for expensive lahmacun! There's neither domestic nor foreign tourists left

"The costs have increased, Turkey is now considered expensive."